Nirmala Sitharaman | 10 Key points on Economic Package India

Our Prime Minister announced an Rs.20 lakh crore package which is 10% of India’s GDP aimed to revive the stalling economy and to make a self-reliant on 12th May 2020. He laid out a comprehensive vision after consulting with several sections of the society. Five pillars of self-reliant India are Economy, Infrastructure, System, Demography, and Demand. He said that the details of the economy package will be delivered by our Finance minister.

Bigger economic package to fight COVID-19 on cards, announcement soon

Objective: The Economic package is to spur growth and enhance demand and to create a Self-reliant India.

Finance Minister Nirmala Sitharaman unveiled the details of the economic package to uplift the economy.

Some of the major key points discussed on Economic Package India-20 Lakh crore are:

  • Due date of Income-tax return for the financial year 2019-20 to be extended from July 31, October 31, 2020, to November 30, 2020. The tax audit extended from September 30 to October 30.
  • To increase the flow of credit-Special liquidity scheme for Rs.30,000 crore for NBFCs/HFC/MFI in both primary and secondary markets.
  • MSME (Micro Small Medium Enterprises) Definition has been changed.
  • The investment limit for MSME is revised upwards from 25 lakhs to RS.1 crore.
  • Rs.3 lakh crore collateral-free loans for MSME, having a 4-year tenure and moratorium of 12 months. These loans will be available until October 31, 2020. It will help 45 lakh units to continue jobs and safeguard the jobs.
  • One time liquidity infusion on Rs.90,000 crore has been made for the Power distribution companies. This will benefit customers.
  • A major relief to contractors, all central government agencies to provide an extension up to 6 months without cost to the contractor, to obligations like completion of work covering the construction and goods and services contracts.
  • EPF(Employee’s Provident Fund) contribution has been reduced for Business and workers for 3 months.
  • Global tenders to be disallowed in government procurement tenders for up to Rs.200 crore. This will lead to self-reliant India.
  • All pending refunds to be issued immediately- for Charitable trust, Corporate business, and professions.

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